Goods Receiving Flow for Purchase Orders

Outcome

The goods connected to your purchase order are received and put away at your plant. Quality inspection could have been carried out and reported. If some goods are rejected during quality inspection, a claim is created. Appropriate documents are printed, and all reported transactions are logged in the PO line transaction file. For stocked items, the on-hand balance is updated and the items are made available.

Internal account entries are created. Provided that the PO line is finished, purchase statistics are updated with information such as delivery time variance, interest costs for early deliveries, and QI results. The inventory value rises since new goods were added to the existing stock.

You view the balance identity of the goods in 'Balance Identity. Open Toolbox' (MWS068), and the historical stock transactions in 'Stock Transaction. Display History' (MWS070). Also, you can monitor the status development of the purchase order or PO line in 'Purchase Order. Display Lines' (PPS220).

Usually, if a claim is created, it is created automatically in 'Return To Supplier. Open' (PPS390).

You match the invoice connected to the purchase order in 'Supplier Invoice. Record' (APS100).

You can reverse the reporting of goods receipt, quality inspection, and put-away in 'Purchase Order. Display Line Transactions' (PPS330).

These files are updated:

• Planning overview (MITPLO)
• PO lines (MPLINE)
• PO line transaction (MPLIND)
• Stock transaction history (MITTRA)
• On-hand balance (MITLOC)
• Item/warehouse (MITBAL).

Before you start

• A purchase order must be created. See Create, Release, and Display Purchase Order .
• Settings in the document Settings for Goods Receiving, Quality Inspection, Claims and Put-Away must be specified.
• Settings must be specified according to Basic Settings for the Purchase Flow.

Lot control in the purchase flow

If you control lots and serial numbers in the purchasing flow, the conditions must be fulfilled in: .

Description

This table describes the five goods receiving flows and the field values that are required for each flow:

Flow 1 - Receive goods with direct put-away

This flow is used when goods receipt and put-away are reported in the same activity, which is called direct put-away. The goods are placed in the final location directly after goods receipt, and the balance-ID status of the goods is 2. This flow involves the least possible reporting.

As a variant of this flow, you can perform direct put-away towards a status 1 location without other goods receiving activities. This option is enabled by having 'Inspection point' defined as 0 instead of 1.

Flow 2 - Receive goods with QI before put-away

This flow is used when the three activities are performed as separate steps after one another and can involve different people and roles within the organization. The balance-ID status of the goods is not 2 until final storage after quality inspection and put-away.

As a variant to the quality inspection, you can have dynamic quality control, which means that the quality inspection is only carried out on certain occasions or with certain intervals. This is defined by the goods receiving method and the QI plan.

Flow 3 - Receive goods with QI after put-away

This flow is used when the three activities are performed as separate steps after one another (and can involve different people and roles within the organization), and when the quality inspection is carried out after put-away. The balance-ID status of the goods is not 2 until after put-away and quality inspection. Note: After put-away, the goods are placed in a status 2 location, but the balance-ID status of the goods is 1 until after quality inspection.

Flow 4 - Receive and put-away goods

This flow is used when no quality inspection is carried out but when the put-away is chosen as a separate activity, such as when different people and roles within the organization report the goods receipt and put-away.

Flow 5 - Receive goods and inspect quality

As a variant to quality inspection, you can have dynamic quality control, which means that the quality inspection is only carried out on certain occasions or with certain intervals. This is defined by the goods receiving method and the QI plan.

Activity description

1. Receive goods

   The receiving of goods is the mandatory first activity for all goods receiving flows. You register the quantity as received, and the quantity is assigned a specific goods receiving number. The number is used throughout the goods receiving flow.

   Example of the use of receiving numbers:

   PO number	PO line	Receiving number
   7070488	010	90035001
   	020	90035002
   	030	90035003
   	All the PO lines	90035000

   The first PO line has a receiving number that ends with 1, the second PO line ends with 2, and so on. To be able to view the entire purchase order in the programs described later in this document, you use the receiving number that ends with 0.

   You choose a location for storage when registering goods receipt. If direct put-away is used (flow A), you report final storage and the location chosen must have status 2-'Approved' available. If goods receipt is the first step of several activities (flows B, C, D, and E), the location chosen must have status 1-'Under inspection' awaiting approval.

   If direct put-away is used (flow A), you can create lots or lot numbers, choose a location and choose a location for cross-docking, if defined by the goods receiving method.

   A document is automatically printed, if defined by the goods receiving method. After the goods are registered as received, the status of the PO line is 50. However, when direct put-away is used, the status of the PO line is 75-'Put-away complete'. For a purchase order or PO line that has status 75, the next step will be supplier invoice matching.

   You receive goods in 'Purchase Order. Receive Goods' (PPS300).

2. Inspect the quality of goods

   You inspect the quality of the received goods according to your specifications in the goods receiving method. There it is specified whether quality inspection is mandatory or optional, or if dynamic quality control is used, and which reporting alternative is valid. An example of a reporting alternative is "always performed with mandatory reporting."

   You report the QI results by the use of the goods receiving number assigned to each quantity (normally the same as a PO line) during goods receipt. The QI results are specified as approved, approved with remarks, partly rejected or rejected. If an item is reported as rejected, you can have the error automatically transferred into a claim. This is defined in 'Settings - Purchasing' (CRS780).

   You choose a location for storage when reporting quality inspection. If quality inspection occurs before put-away (flow B), the location chosen must have status 1-'Under inspection' awaiting approval. If quality inspection is the last activity in the flow (flows C and E), the goods are already located at the final storage location.

   If defined by the goods receiving method, you can create lots or lot numbers when reporting the QI results. This is useful if a delivery contains more than one lot or serial number, or when the delivery will be made in different containers.

   A laboratory inspection control can be connected to the quality inspection. This is defined for the item by the inspection code, which can create a laboratory inspection request. The laboratory inspection is reported separately in 'Lab Inspection Request. Open' (LIS200). The result is then approved in (PPS310).

   A document is automatically printed, if chosen by the goods receiving method. Normally after QI is reported, the status of the purchase order is 65-'Quality inspection completed'. Other possible status codes are 60-'Quality inspection partially performed', 64-'Rejected after quality inspection, course of action not determined in claim routine', and 69-'Rejected after quality inspection, course of action determined in claim routine'.

   You report QI results in 'Purchase Order. Inspect Goods' (PPS310).

   You can connect a QI plan to your goods receiving method. In the QI plan you may set inspection level and sample table, and specify certain inspection tasks.

   You can use dynamic quality control, which means that the quality inspection depends on the QI plan connected to the item/supplier combination. In that case, a counter is connected to the QI plan, and the quality inspection is performed only at specific intervals.

   Claims

   When goods are rejected in the quality inspection activity, a claim to the supplier is often created. The usual way of handling this transaction is to demand either a replacement delivery or a credit note from the supplier.

   In M3, claims can be created manually in a certain program but they can also be created automatically from the quality inspection.

3. Put-away goods

   Use this activity to report final storage of the goods, if it is chosen as a separate activity. You report put-away by the use of the goods receiving number assigned to each PO line (or quantity) during goods receipt.

   During put-away you can create lots or lot numbers and choose a location and a location for cross-docking, if defined by the goods receiving method. This is useful if a delivery contains more than one lot or series number, or when the delivery will be made in different containers.

   A document is automatically printed, if chosen by the goods receiving method. Usually, after put-away is reported, the status of the purchase order or PO line is 75-'Put-away complete'. If only one part of the received quantity is put away, the status of the PO is 70-'Put-away partially completed'. For a purchase order or PO line that has status 75, the next step will be supplier invoice matching.

   You report put-away in 'Purchase Order. Put away Goods' (PPS320).

Goods receiving documents

Different kinds of receiving documents can be printed automatically after goods receipt is reported. The goods receiving method controls which documents are printed. Option 11='Documents', on the (PPS345/B) panel opens 'Goods Receiving Method. Connect Documents' (PPS346). This program displays all documents connected to the receiving flow for a certain method. These documents must also be defined in 'Std Document. Open' (CRS027).

Document numbers connected to the goods receiving flow are:

Goods receiving - purchasing:

• 70A = Hazardous goods label
• 70B = Quality inspection
• 70C = Receipt document totaled
• 70D = Receipt document detailed
• 70E = Receipt document item number/package

Quality inspection - purchasing:

• 70H = Marking label
• 70I = Quality inspection result
• 70J = Picking list for inventoried items after rejection in the inspection report

Put-away - purchasing:

• 70L = Receipt document
• 70N = Receipt document
• 70O = Marking label PO receipt report
• 700 = Way bill Variant 20=CMR variant 60=Swedish

Lot handling in the PO receiving flow

Outcome

A lot number or an item with a serial number is created during goods receiving for purchased items.

A received quantity is split into the created lots.

Outline

1. Goods receipt is performed in 'Purchase Order. Receive' (PPS300). A lot number is created automatically or has to be created manually.

2. In cases of serial number handling and/or lot splitting, then 'Purchase Order. Create Item Lots' (PPS315) must be started where lots/serial numbers are created. Information about lot and serial numbers is also specified here.

3. The next activity is to split the transaction quantity into the created lots or serial numbers. This is done on 'Purchase Order. Split Lines' (PPS302/B). Click F14 on the (PPS300/E) panel to start this program.

4. Note: The lot can be split later during quality inspection in 'Purchase Order. Inspect Goods' (PPS310) if this process is part of the goods receiving flow.

Click F14 on the (PPS302/B) panel to confirm and complete the goods receiving and lot handling, and return to the (PPS300/B) panel.

Cross-docking of received goods

The cross-docking function in M3 identifies when stock being received is required for issue within a short time. It then directs the stock to the appropriate cross docking location instead of to the ordinary location. The triggers that cause cross-docking are demand in combination with a stock shortage.

Cross-docking results in an allocation to the demand order that caused the cross-docking.

The demands can be internal or external orders, or acquisition orders. Internal orders include material manufacturing orders, distribution orders, move orders and requisition orders. External orders are customer orders. Acquisition orders can be manufacturing orders, purchase orders, distribution orders (receiving warehouse) and requisition orders (order category 40).

Outcome

The goods connected to an acquisition order (PO, DO, RO, or MO material) are received, cross-docked and put in a location where they are available for dispatch.

The cross-docked goods are used when you release the demand order for dispatch and report the picking list, for example in 'Delivery. Open Toolbox' (MWS410). This can be done either manually or automatically depending on the dispatch flow.

See .